Wednesday, November 11, 2015

Some Deal-Making Advice for Donald Trump

Some deal-making advice for Trump on China: Never interfere with a trading partner when they are doing you a favor

By Mark Perry

Donald Trump doesn’t like what he calls China’s “currency manipulation.” He outlines his dislike for China’s monetary policy in today’s Wall Street Journal and presents his plan to address that “manipulation” on “day one of a Trump administration.”

I’ve taken the liberty of editing some of Trump’s op-ed to present the opposing and positive side of China’s currency policy, here’s my version:

New Title: “Ending China’s Currency ManipulationGenerousSubsidy of American Consumers and Businesses”

New Sub-title: “China’s de facto tariff on imported goodsappreciation of the US dollar has costsaved the U.S. billions of dollars and supported millions of jobs.”

Revised Text: Economists estimate that the yuan is undervaluedUS dollar is overvaluedanywhere from 15% to 40%. Through manipulation of the yuanappreciating the US dollar, the Chinese government has been able to tip theinternational trade balance in their directionour favor by imposing a de facto tariff on all imported goodsselling American consumers and businesses imported Chinese goods at a 15-40% discount. Imagine the favorable impact thesetrade practices and low prices have had on our weakened manufacturing base, our agriculture industry and every small business unable to compete internationally. nation’sconsumers, businesses, and manufacturers.

Unfortunately, deal-maker extraordinaireMr. Trump wants China to stop giving us such a good deal, and plans (if elected) toimpose new taxes on Americans buying products from China…....